This week in banking news - home loans, ANZ cut savings accounts interest rates and the chances of an RBA October cut
Friday 27 September 2019
In this week’s banking recap, we look at ME ditching credit card plans, ANZ’s interest rate cuts on savings accounts, smaller lenders taking on the big banks with home loans and whether the Reserve Bank of Australia (RBA) will cut rates in October.
Will the RBA cut rates in October?
With the RBA’s monthly meeting coming up next week, the big question on everyone’s minds is: will rates be cut once again? The market is fairly confident that the Reserve Bank will go ahead and cut, which would bring the official cash rate down to 0.75%, half of what it was at the beginning of 2019. Plus further cuts could mean even lower home loan interest rates. Stay tuned for more news updates on RBA cuts in the coming days!
Small lenders compete with the big banks for the home loan market
Talking of home loans, with the spring property season well and truly underway, a number of smaller lenders seem intent on taking on the big four, in a bid to take back some of the home loan market share. Online lender loans.com.au launched two new investor home loan products on Tuesday 24th September. Plus, ME Bank also made its voice heard by cutting variable principal and interest and interest-only investor home loan rates by 49 basis points. So if you’re searching for a home loan this spring property season, why not check out our home loans comparison page.
ME bank ditches credit card plans
While ME enjoyed growth in its home loan portfolio this year, on the other end of the scale, the online bank ditched credit card plans, amid the buy now, pay later frenzy. ME’s CEO Jamie McPhee announced plans for more credit card plans last September, but the plans were later abandoned, a fact which McPhee attributes to the growing number of buy now, pay later services, now available in Australia.
Afterpay released statistics earlier this year revealing that only 41% of Aussie millennials use credit cards, a low figure compared to the 58% of young credit card users in 2002. While buy now, pay later could be a large factor in ME’s decision not to introduce more credit card products, Mozo Banking Expert Peter Marshall wasn’t so sure. Marshall suggested that other factors, such as the introduction of new banking regulations may also have caused the online bank to drop its plans.
Of course if you think a credit card could be better for you, then why not head to Mozo’s credit card comparison page, to see what credit card would best suit your lifestyle.
Bad news for ANZ savings account customers
On the topic of interest rate cuts this week, interest rates for the ANZ Progress Saver and ANZ Online Saver also fell by 0.10%. While the ANZ Progress Saver’s base rate remains at 0.01% the bonus rate fell from 1.94% to 1.84%, making the new maximum rate 1.85% (if you meet the bonus rate requirements).
Plus if you’re a current ANZ Online Saver customer, then you might not be too pleased to hear that the base rate for this savings account has been cut from 0.15% to 0.10%. And if you’re a new customer thinking of signing up to the Online Saver account, then your new bonus rate will be 1.75%, with the new maximum rate standing at 1.85%.
If you don’t think you’re getting the best interest rate on your current savings account, then why not head to our savings accounts comparison page to see what else is out there. Or check out the deals below to see if you could be earning more interest on your savings.